Retirement Plan Assets

Using retirement fund assets to leave a legacy gift has become increasingly popular because of potential tax benefits. These assets include pension plans, 401(k) or 403(b) plans, Individual Retirement Accounts (IRAs), profit-sharing plans or stock bonus plans. In some cases, the assets in these plans have been growing tax-free for years and may be quite sizeable. Distributions from most of these plans to you or to your heirs after your death are considered taxable income (except for Roth IRAs). In addition, assets in these plans become a part of your taxable estate and may result in additional estate taxes.

The resulting taxes may decimate the value of your account for your heirs. You may want to consider avoiding heavy tax burdens by naming the St. Louis Arc as the beneficiary of all or part of your retirement benefits. The assets then would pass to the St. Louis Arc free of income taxes and would no longer be considered a part of your estate for estate tax purposes. The full value of the account would be available to help the St. Louis Arc achieve its mission.

To do so, you can contact your retirement plan administrator and designate the St. Louis Arc, 1177 N. Warson Road, St. Louis, MO 63132 as beneficiary. If you are married, your spouse may also need to execute a written waiver to the account.

If you plan to or already have included a legacy gift to the St. Louis Arc in your estate planning, please let us know by emailing our Advancement Office or by calling 314-817-2240 so that we may acknowledge your generosity.

This information is not intended as legal, estate, or tax planning advice. Please consult your professional legal and financial advisors for complete information.